1.3 Business Ownership (Advantages And Disadvantages Of Business Ownership) Flashcards
1
Q
Advantages of sole trader
A
Easy set up
Cheap set up
2
Q
Disadvantage of sole trader
A
Isolating
Difficult to expand
Difficult to get time off
Unlimited liability
3
Q
Advantages of partnership
A
Ability to take on more business
Access to more capital
Each partner brings a different skill
4
Q
Disadvantage of partnership
A
Partners can fall out
Unlimited liability
5
Q
Advantages of Ltds
A
Limited liability
Unlimited shareholders
6
Q
Disadvantage of Ltds
A
Paying dividend
Difficult to sell shares
7
Q
Advantage of Plc
A
Make lots of money
Anyone can buy shares
8
Q
Disadvantage of Plcs
A
- Company reports have to be made public
- HOSTILE TAKEOVER can occurr if a shareholder owns more than 50% of shares
